Sable Resources owns and operates its own mill in British Columbia, which provides it with a competitive advantage by allowing it to process its own gold and silver on site. However, the company faces challenges of having only one year's worth of mill feed currently and high operating costs. The president and CEO, Mel Rahal, acknowledges issues with keeping shareholders informed but plans to address this by hiring investor relations support. Rahal remains optimistic about Sable's opportunities if it can increase exploration success and prove more resources.

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Is Mel Rahal Up To The Challenge?
Sable has the Mill, Now It Must Prove the Silver and Gold to Feed It
~ By Kevin Michael Grace, December 1st, 2010
Mel Rahal sold 10 dore bricks on Tuesday. Three percent gold promotion and getting the facts out.” Sable does produce silver
and 97% silver. Total revenue: $580,000. Not bad for a day’s and gold, but news is thin on the ground. It published 10 press
work. That’s the advantage you get from owning your own mill, releases in 2006, nine in 2007, three in 2008, five in 2009 and
and the President and CEO of Sable Resources Ltd is one of the only four so far in 2010. This dearth of information has left Sable
very few in British Columbia who does. a largely unknown quantity—it is not uncommon for no shares to
trade on any given day, and its stock price has yo-yoed between
$0.085 and $0.415 in the last year. Its market cap, as of Novem-
Sable has other advantages: positive cash flow and 58 square ki- ber 25, was $9.48 million.
lometres with considerable known mineralization. Its disadvantag-
es are that the company estimates it currently has just one year’s Sable’s Baker Mill commenced rehab and development in 2008.
worth of mill feed; Hydro power is 25 miles away; equipment and Since then, Rahal has continually upgraded it, determined to
workers must be flown in; and thus it spends $1.4 million annually “have another piece of equipment that can do the job if the first
on fuel. one goes down.” Baker produced $925,000 of gold equivalent
in October, and $900,000 in September; operational costs are
$600,000 monthly. Sable has a cash position of $700,000.
Rahal thinks Sable’s share price is “ridiculous.” He argues, “If
you had to build that mill now, it would cost you $80 million, and
it would take you five years to get approvals.” If you could get
them, given the level of opposition from environmentalists and
Indian bands to mining operations in the Duncan Lake area. In
2007, Northgate Minerals Corporation wrote off its seven-year,
$32-million Kemess North project, 30 kilometres south of Sable, in
anticipation of the government refusal that followed in 2008.
So Sable remains as one of only two producers in the region, and
it faces a crisis and an opportunity. The crisis is the “abuse” Rahal
admits he has suffered for Sable’s share price. The opportunity
is the “window that has been opened with the price of silver and
gold.” Rahal says he is committed to action. “We’ve got to hire
somebody to assist me here in the office,” he admits. In Septem-
ber, he hired an investor relations company and promises the
market can expect regular press releases.
Sable does not have a 43-101 resource estimate. Since 1990, 257
holes have been drilled. Assays from the Creek Zone have run as
These are challenges that would tax any company’s management. high as .0197 gold oz/t and 15 silver oz/t. “The potential for the
For years Sable had been pretty much a one man show. However, area is quite large,” Rahal summarizes.
recently, Rahal has brought more depth to his bench.
Since September 2010 the company has been press releasing
Rahal has a proprietorial attitude toward Sable, but he comes monthly production totals. Rahal seems confident enough. He
by it honestly. He explains that when he took over the company promises “a major exploration program next year” and says, “just
20 years ago, “I put up 600 grand, and my buddy ran off with the watch us.”
money.” To this day, he explains, “A lot of the money that’s gone
into this has come from me.”
It’s hard for any man to wear so many hats, even one as expe-
rienced and competent as Rahal. He reports, “Normally when
I come down to the office in the morning I’m dealing with prob-
lems.” Last month, for instance, production was severely impacted
when the mine’s 3.5-yard scoop broke. “Nobody thought to order
the parts, and they had to come from Sweden. So there was two
weeks gone. Meanwhile, we had a two-yard scoop trying to feed
a 250-tonne a day mill and couldn’t do it.” And he interjects during
our interview, “I’m going to have to get off this call, and we’re go-
ing to have to buy another pump.”
Rahal confesses that his preoccupation with day-to-day opera-
tions “precludes me from doing the other part of the business:
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